loan advice for 2011

phidy2010

Hi there i am new to all this.

i am currently considering getting a loan i have passed the checks ect just got to sign the paperwork with nationwide for


Loan Details
Loan Amount: £7,500.00
Loan term: 54 months
Total Amount Payable: £10290.78
APR: 15.7%
Monthly repayments: £190.57

i originally only went for a 4.5 k loan but the interest on that was a 19.9 so thought it wise to take advantage as it will pay the insurance of for the first year (approx2.5k) as i am going to buy a mini cooper s 1.6 as a first time driver

so this leaves me with 5k to purchase the car which i will get considerably cheaper than normal as i am buying a ex demo car through work

a little about me and my current debts

23 year of telecommunications worker
married with a child about to be born hence the reason for a reliable car

worked for company for 3 years
income 22000 bonus 6000
wife income 6000

home - purchased but do not want to put any debt on it rather on me i believe the nationwide loan is not on the property but until the paperwork arrives i can not confirm that.

Debts and out goings



Direct Debits

mortgage - 550.00
Vodafone - 90.00 2 contracts includes insurance
SKY- 22.00
Gas/Elec- 67.00 may have to increase this due to gas usage
Little woods 136.00
Council Tax 85.00

TV License 12.50
Motorbike Finace 160.00 due to end in april
Motorbike Insurance 40.00 will stop soon when bike paid for and sold as used once in a year !!!

Bus : 80.00
Shopping /Credit Card: 150.00/500
Comet 20.00
Argos card 00.00
Studio 30.00
Nationwide 380.00 overdraft racked up shopping
RBS 1790.00 overdraft racked shopping



now obliviously 2k in overdraft would be sickening but that will be paid of over two months and a days overtime to me is about 150.00 so not to worried... *just got to bring my self to actually do it - sick

current debts

comet edge card (big mistake!) -503.73 27.9%apr limit 600.00

argos card -295.00 6 months no payment req limit 330.00

Capital one credit card -300.00 30.4% apr limit 500.00
Paid off money waiting to be transferred

Nationwide Credit Card -2550.00 19.9%apr balance transfer 0.0%apr so could transfer it all out then back in lol

- please note this was all racked up over xmas
new sofa, new table and chairs and is on a direct debit for 500.00 each month

Motorbike finance

-600 was originally 2.5k 8 months ago
will be sold as i do not use it

Littlewoods

-425.00 interest free direct debit 250.00 per month credit limit 1300.00

Very

-307.00 interest free will pay by full direct debit in six months when interest free period finishes

24.studio (nightmare company)

-270.00 42% apr but i am happy to pay it as it is the misses account and ill get a rollicking direct debit for 40.00 a month

i think that is all of the debts

now as you can all see that is quiet a substantial debt, my job touch wood cling on to it is safe i can afford the loan as one will be finnished soon and most of my debts paid of in the next 12 months

but is is wise to get one in 2011????????????

i also have savings of 90.000 in a 10 year bond that my father set up for me and 7500 in shares in my company that has risen from 68p a share to 180 a share over 3 years

so i am safe but dont wish to rely on any of it

home purchased in January purpose built two bedroom apartment worth 130.000 mortgage left 80.000

[Deleted User]

if it were me i`d be trying to pay off some of the very expensive debt that you`ve racked up and not looking to take on new debt
can you sell the shares?can some of the £90k be got at?
maybe go over to the debtfree wanna be forum and post a statement of affairs as well?

phidy2010

woodbine wrote: »

if it were me i`d be trying to pay off some of the very expensive debt that you`ve racked up and not looking to take on new debt
can you sell the shares?can some of the £90k be got at?
maybe go over to the debtfree wanna be forum and post a statement of affairs as well?

i have no worry over existing debt i have 1k go out on average a month paying it off i was debt free 3 months ago but with the baby on the way had to buy some things and racked over 5k on debt
i am very shrewd only mistake was comet which i shall transfer on to the credit card then pay of in one month

Emmzi

I would never take a car loan for more than 3 years as most people want to change cars at the 3 year mark and you want to be clear of the old debt by then.

I'd go for the kowest possible insurance group for a couple of years also. Maybe ask on the car board?

A mini is a fab car but not so practical for buggies etc!

phidy2010

Emmzi wrote: »

I would never take a car loan for more than 3 years as most people want to change cars at the 3 year mark and you want to be clear of the old debt by then.

I'd go for the kowest possible insurance group for a couple of years also. Maybe ask on the car board?

A mini is a fab car but not so practical for buggies etc!

i know what you are saying but i have made my mind up
i have no worry paying the debt back nor the insurance being 2k
what i am asking is what peoples thoughts are on a loan in 2011 i can not see my job being affected touch wood it is a requirement in 90% of homes

Derivative

Relying on debt to live your day to day life is simply losing you money that could go towards better things.

Loan Amount: £7,500.00
Total Amount Payable: £10290.78

Do you have no issue with throwing away £2800 of capital?
I really should be a lender.

With a baby on the way shouldn't you be saving for school fees and such? Give them the best start in life and all that.
Nothing against shiny cars but you don't kid me that it's a present for the baby. Would you have given two !!!!s if you had a breakdown once or twice in your childhood?

KingElvis

Barmy, you'll end up in trouble using a bank loan to pay 2.5k in insurance.......barking

opinions4u

Borrowed an extra £3000 to save on interest? Madness.

Borrowed over 54 months to pay insurance for 12 months. Madness.

Sooner or later reality needs to take an interest in your finances otherwise you and your family are going to hit a financial wall.

You are not "very shrewd".

MFWannabe

phidy2010 wrote: »

i have no worry over existing debt i have 1k go out on average a month paying it off i was debt free 3 months ago but with the baby on the way had to buy some things and racked over 5k on debt
i am very shrewd only mistake was comet which i shall transfer on to the credit card then pay of in one month

You have racked up 5k of debt in 3 months!!! OMG!!!!
This is not the work of someone who is 'very shrewd' as you seem to think you are.
If you have 1k of your money going out on debt every month don't you think it would be better to pay off your existing debts and then save after that to enable you to buy a car?
A very shrewd person with money would know that's a better idea and would know how good they are going to feel when they are saving that 1k a month they are currently spending just paying debt

Derivative

A very shrewd person would not take on any debt that's not going to benefit them financially.

Apples2

i am very shrewd only mistake was comet which i shall transfer on to the credit card

I had to take issue with the "I am very shrewd" comment too. Sorry but you are an absolute Country Mile away from being shrewd.

You have (and are) making mistake after mistake, your earnings are mediocre but you are planning spending like you are high earners with no worries.

Your fallback is handouts, not something you have "shrewdly" planned for. I'm sure there are many of us who can see that money disappear without you even realizing.

I'm not convinced you will take any advice from MSE. You seem to be satisfied your £90k and shares has moved you into a different social sector. You are using your mediocre salary to live in it by piling it all on cards and loans.

EdgEy wrote: »

Would you have given two !!!!s if you had a breakdown once or twice in your childhood?

I look back with fond memories when my old man dragged me out of bed at 6-30am to bump start the Hilman Avenger up and down our road! Character building stuff :)